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The FTSE 100 index of shares is on the right track for its worst week up to now in 2025. Down 1.8%, it’s slumped as fears on potential ‘Trump tariffs’ — and the specter of retaliatory motion from the US’ commerce companions — steadily develop.
Information at this time (7 March) that Chinese language imports collapsed 8.4% in January and February hasn’t helped the temper, doubtlessly reflecting producers’ fears over the impression of recent commerce wars.
President Trump’s resolution to delay some tariffs this week offers cause for hope. However markets hate uncertainty, and extra volatility on the Footsie (and different main indexes) will be anticipated as combined alerts from Washington proceed.
However this shouldn’t trigger long-term traders to panic. The Footie is up 12 months to this point and over 12 months. And I’m scouring the inventory market to any discover good bargains which were bought off within the panic.
Listed below are two I feel deserve critical consideration from savvy traders.
Smurfit WestRock
Packaging producer Smurfit WestRock (LSE:SWR) is one which’s grabbed my consideration. At £36.26, its price-to-earnings (P/E) ratio has tumbled to 14.2 occasions for 2025 following current value weak point.
However what’s actually appetising is its rock-bottom price-to-earnings development (PEG) ratio of 0.2. Any studying under one signifies {that a} share is undervalued. Smurfit shares clearly fall nicely under this threshold.
Smurfit sells cardboard containers and different packaging merchandise throughout the globe, and is an particularly massive participant throughout Europe and North America. However it faces vital headwinds if punishing commerce tariffs are available in to dampen shopper and enterprise spending.
On the plus facet, its vital publicity to defensive industries may assist restrict any turbulence. It sells product throughout every a part of the meals and drinks provide chain, and can also be a key provider to fast-moving shopper items (FMCG) and foodservice prospects.
What’s extra, its earnings outlook stays strong over the long run. Main structural alternatives (like the expansion of e-commerce and rising markets development) exist. Moreover, its regular transition to offering sustainable merchandise places it extra according to rising buyer wants.
With its ahead dividend yield additionally now peaking above the FTSE common (at 3.6%), I feel it’s an excellent dip purchase to think about.
Scottish Mortgage Funding Belief
The Scottish Mortgage Funding Belief (LSE:SMT) is one other blue-chip faller I feel deserves critical consideration.
Tech trusts like this have fallen sharply as a result of cyclical nature of their holdings’ operations. However this isn’t the entire story. With massive holdings in SpaceX and Tesla, traders concern it might be an oblique sufferer of the ‘Elon Musk trade’ (with those that don’t align to his political opinions shunning property and merchandise related to the billionaire).
These dangers deserve critical consideration. However I additionally imagine they could be baked into Scottish Mortgage’s ultra-low valuation.
At 980.2p, it now trades at a 14% low cost to its web asset worth (NAV) per share. That is the widest it’s been for nearly a 12 months.
I additionally imagine that, on steadiness, the potential advantages of proudly owning Scottish Mortgage shares outweigh the dangers. Over a long-term horizon, I anticipate fast-growing tech sectors like synthetic intelligence (AI), cloud computing and robotics to drive earnings via the roof.
